Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Max - it was NIL.
Potentially it’s way over 100 bopd but there were technical problems, particularly water cut, that made development problematic. PRD are paying a good price for it so they clear believe they can deploy their technology/ cash to achieve an effective result.
I’m assuming they’ll need some large tanks to deal with water cut on site.
Re 100 bopd trigger yes I’m sure they’ll be wary for the $1 million but if they can get significantly more it’ll be worth paying the price at current WTI.
Madmax - I would certainly be interested in a detailed evaluation of the measures taken to increase production and how successful they’ve been. As you rightly indicate they are old fields and it’s a feat to maintain overall production because success in one area is often matched by gradual decline in the round.
Having said that they seem optimistic on TI field which has good potential and except the PRD involvement has had little CapEx for many years. infrastructure is very good at TI and PRD are on board to assist.
Briggsy - CONT - regarding the Uruguay opportunity looks like a binary issue - if they succeed in farm out, as CEO suggests, within 12 months, SP progression will probably exceed most shareholder expectations - if it fails - another disappointment- that’s the deal on a high risk Exploration and Production Oilee! No one obliged to invest DYOR!
Briggsy - CONT- They’ve also stated they’re in negotiations to sell other assets in Trinidad so watch this space - BTW an aggregate sold value of $9 million regarding Cory Moruga with buy back option looks like it was worth holding out for!
Briggsy - CONT -strategy has evolved in Trinidad from production to profitability and even die hard disgruntled ex- shareholders would probably accept BOD have done well to exchange 35 bopd from 2 recently sold assets for an annual saving of over $1 million plus near term cash exceeding $3 million!
Briggsy - thanks for your honesty- I agree that was the stated aim - we still haven’t had a full report of the measures taken and the effectiveness but I suspect that they’ve only had modest success - nothing to write home about or RNS. That said they’ve managed to keep up production to around 350 bopd so can achieve useful cash flow and cover Trinidad expenses.
CONT…
Nice one BillyRay - good to hear the strategy outlined by CEO - seems like some of the disgruntled won’t like the idea of more cash rolling in from additional ‘ non - core ‘ asset sales but existing shareholders are the ones to be pleased now!
Gazza - have at look at recent RNS - 2 strategic sales of assets it was uneconomical to develop bringing in over $3 million in the near term - what’s not too like - it will certainly keep them afloat whilst they titillate the Uruguay holding for the big boys!
Briggsy - I gave the example in my post of a possible scenario if they had to Place to fund working capital from a position of relative weakness - perhaps it’s difficult for disgruntled ex- shareholders to understand.
If you were in charge would you not have sold them for those prices - they both needed lots of capital and some expertise CEG lack and even with a fair wind no guarantee of success?
Briggsy - as one of the disgruntled I know it’s difficult for you to see the bigger picture but making savings of over $1 million per annum in running costs from the recent 2 sales is huge. Additionally getting in over $3 million cash near term is immense so that they can raise any new cash from a stronger position, rather than 0.04p - thereby ‘ delivering shareholder value’ for which the BOD get paid.
Briggsy - they’re doing a remarkable job - annual savings of more than $1 million per annum from this disposal and Cory Moruga and keeping assets currently producing 90% of oil, not to mention the $3 million near term cash - as a disgruntled ex-shareholder don’t you think the BOD have made the right decision for the existing shareholders.
Re previous post should be G&A ‘ deficit ‘.
The company wanted to use profits from Trinidad production to reduce the deficit and have made some inroads but the planned production increase has yet to materialise- we await details of Trinidad campaign.
Druid - details are in RNS, including cash component.
As G&A was running at $200,000 monthly the savings on transfer of Cory Moruga, at over $52,000 monthly will be most welcomed by shareholders, except the disgruntled cohort LOL!